The new regulator operator model' for the NSW land title system - PowerPoint PPT Presentation

The new ‘regulator operator model' for the NSW land title system Sydney Business Chamber CEO Leadership Roundtable Lunch Jeremy Cox NSW Registrar General 13 February 2018

The new regulator operator model is the next step in a constantly improving land title system 22 February Computerised July February August Torrens Title System First Crown Land recorded eConveyancing Standalone Office of the (James Ruse) timeframes mortgages and Registrar General A world first established announced refinancing goes digital September July 1 January eConveyancing reform Torrens introduced LPI Bill through Private concession Parliament commenced 1

The NSW Government introduced the regulator operator model to drive an efficient, digital and customer focused land title system 2

NSW Treasury selected Australian Registry Investments (ARI) to operate NSW’s land title system for 35 years Paid $2.6 billion to operate LPI — and receive its revenue — under a 35 year concession*. First State Super ARI does not own the registry or the data that goes with it. These remain the property of the NSW 30% Government. 70% Funds managed by Hastings Fund Management *A ‘concession’ is when a private business pays the government to operate a public asset for a specific period of time. 3

The Office of the Registrar General is a regulator, advisor and litigator, working to ensure the integrity of NSW’s land title system 4

The Office of the Registrar General’s regulatory focus will be on making sure the operator delivers ongoing improvements to customers Regulator objectives a Maintain integrity, security performance and availability of registers, core services and systems a Ensure registers are accurate and up to date a Maintain confidence with customers and NSW public a Promote improvements, innovation and increased efficiency using greater expertise and investment in technology a Minimise errors and frauds a Protect current competition in down stream services 5

And we have new powers that don’t exist in other Australian states, and in most overseas jurisdictions, to manage these risks Registrar General Minister Reserve powers Step in Administrative review Termination Civil penalty tied to KPIs Handback 6

We have targeted controls to manage risks related to a private monopoly provider of a core service Some other controls in response to issues raised by stakeholders Prices CPI cap Privacy Commonwealth and state legislation Fraud and errors TAF remains. No change in risk profile ISO standards (270002), audits and testing Security 7

Our controls give the State the right tools to detect and assess issues and risks before they materialise Reporting Reviews Risk management Security testing Quality assurance Incident Annual review of Report to RG on risk Vulnerability Standard data management performance controls scans & feeds penetration tests Business Major review (3 to Access to staff, Security Tools to measure continuity and 5 years) locations, standards ISO performance business plans procedures Technology Ad hoc reviews & Risk register and Monitoring, Auditable record of roadmap spot checks report to RG scanning & performance assurance tools in systems 8

A primary driver for the Government seeking a private operator was to bring new investment, innovation and technology “People expect to manage their lives around technology. They want greater access, fewer errors, more transparency. The Government wants this reform to make NSW’s land title system meet a rapidly changing world. To make things better for business and better for the consumer”. 9

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The operator has started the process of upgrading the technology that supports the registry 1. Upgrade of 2. Investment A more secure, efficient, the registry’s in new, customer focused core systems innovative system ‘non - core’ services a Fewer errors and fraud a Registry available 24/7 a Records more easily accessible to customers online a New innovative services 11

With eConveyancing, we are midpoint along the timeline for moving mainstream documents digital 12

The benefits for solicitors and conveyancers are substantial Independent analysis on benefits for lawyers & conveyancers • Up to 75 per cent time savings per transaction • Eliminates almost all risks associated with human error • No longer need to attend settlement • Don’t have to spend time on hold when contacting other parties • Interests are registered instantaneously on settlement • Settlement day is more certain • Funds from the proceeds of a sale are available much sooner. “The other day I settled a transaction from Hawaii” 13

Industry is starting to embrace eConveyancing 50% 45% 40% 35% 30% Total electronic lodgments 25% 20% 15% 10% 5% 0% Mortgage Transfer Caveat Discharge of Mortgage Withdrawal of Caveat Total Total 14

The Government is considering how to make the full conveyancing process digital Pre-Exchange Activities up to exchanging contracts is still paper heavy. Looking at ways to remove barriers in ‘pre - exchange’ stage: contract preparation, negotiations, and exchange. Pre-Settlement • Discharge authority Post-Settlement • Requisitions on title eConveyancing • Transfer documents • Sending orders to the • Settlement adjustment real estate agent • Mortgage discharge • Title transfer registered • Booking settlement Settlement • Settlement funds • Attending settlement Diagram is based on a standard 15 conveyance acting for a vendor.

Digitalising old land title registry documents dating back several centuries will make it easier to search the registry Target Deed receipts, primary application sketches and searches, conditional purchase and powers of attorney Apr-18 Powers of attorney & trusts registers 315 Jun-18 Conditional purchase 195 Aug-18 Primary application misc searches 210 Dec-18 Primary application search sketches 349 Dec-18 Deposited deed receipt books 209 0 50 100 150 200 250 300 350 400 Primary applications, deposited plans and general register of deeds Mar-19 General register of deeds 5527 Dec-18 Early deposited plans 166,508 Dec-18 Primary application search books 1483 April-18 Boundary determinations 1000 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 16

We will support the take-up of digital survey plans to make registering plans in NSW a faster, more accurate process “Around 70% of plans lodged with LRS have an error” 17

The Government is considering options to further strengthen protections for off-the-plan purchasers. Big increase in off-the-plan sales relative to total residential sales 14 12 10 8 % 6 4 2 0 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 18

In summary, we are supporting the Government’s objective to digitise land transactions in NSW 2017-2019 85% of property Work with transactions Implement surveying industry electronically eConveyancing to move to digital ARI reforms format commences Update ITS New Systems for NSW LPI’s innovative records Value added All digitised products 19

Thank you and questions a Visit the ORG website www.registrargeneral.nsw.gov.au a Email ORG ORG.Admin@finance.nsw.gov.au a Subscribe to ORG emails 20